Increases in healthcare, retail, and construction are positives. Disposable income though may disappear because of higher taxes.

The Sacramento Business Review forecasts unemployment will range
between 9 and 10.5 percent.

Jonathan Lederer is one of the authors of the forecast. He
says the overall expectation is for slow growth. He says tax
increases locally, statewide and federally will be partly to blame.
"In terms of job growth, it's going to be modestly positive. It's
not going to be rip-roaring recovery in terms of this massive
change in growth. We think we're positive. We just
think the pace is gonna be a little bit slower."

Lederer says home prices should continue to increase and that
should foster increases in both refinancing and home
construction. Housing supply is expected to remain low,
which should help prices continue their improvement from
2012.